Online Debt Resources

Living debt-free is by far the best way to ensure your future financial security. Having said that, if you, like most people, are trying to get out of debt, it’s useful to be able to differentiate between different debt categories.

Since the 1950s, millions of overextended consumers have sought the help of credit counseling companies  to regain control of their financial situation and pay off their debts. Unfortunately, there has been an alarming increase in the number of complaints filed by consumers concerning abusive practices on the part of debt counseling and credit counseling companies in the past few years (between 1999 and 2003, annual claims of abusive practices filed with the Better Business Bureau increased by 590%).

Due to the economic downturn, the number of consumers faced with high levels of unsecured debt and diminishing incomes has grown over the past few years. Combined with the recent changes introduced into the federal bankruptcy law, which make filing for bankruptcy more difficult, this has resulted in an unprecedented growth in the debt-settlement industry.

With more and more people trying to find ways to reduce their debts, the number of debt-settlement firms has been growing. The perceived benefit of turning to these companies is that they, unlike most credit-counseling companies, undertake to negotiate with consumers’ creditors to reduce the principal of the debt – not just interest and fees. Debt-settlement firms have apparently successfully settled about $2 billion in debts.

Your advisor’s designation can tell you a lot about their background and expertise. Some of the more common financial planning designations include Chartered Financial Consultant (ChFC), Certified Public Accountant (CPA), Chartered Life Underwriter (CLU), Certified Financial Planner (CFP), or attorney (JD), among others. These indicate backgrounds in finance, accounting, business, law, and insurance.

Remember, though, that background is only one aspect of a planner.

For example, you might naturally assume that CPAs have greater background in income tax than other professionals. But that’s primarily due to their experience, not their CPA designation. Did you know that the CLU exam has more questions about taxation than does the CPA exam?

Is there help for debt consolidation? Sure, there is; andin some areas you can get it for free. If you are dealing with bad credit, then you can get help by reviewing the free do-it-yourself kits at your local library. Debtors can utilize their public library and find self help books that will direct them from beginning to end through the process of paying your debts all the way to restoring your credit.

Credit problems are rampant. There are countless commercials on TV for credit repair companies, most everyone you know has had some sort of credit issue, but so far, youve been lucky ” or maybe not. Today, well explore three of the tell-tale warning signs that signal you may be in need of credit repair, and then well outline some of the most successful solutions to help get you back on track.

In the mainstream world of today, credit card debt has become a household bill that many people think of as a normal bill. Most people who are paying credit card debt off need to focus their efforts with more forethought. For instance, obtaining a low interest loan from a commercial bank and paying off a high interest credit card would definitely save money.

A lot of debtors don’t realize that they can obtain lower interest rates from anything other than a home equity loan. Most banks today offer short term loans to persons with good to average credit scores who have current checking or savings accounts with their institution.